Complete the cost card based on the following budgeted data for 8,000 units: Sales 350,000 Direct labour (10 per hour) 40,000 Direct materials (11.25kgs per

Question

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1. Complete the cost card based on the following budgeted data for 8,000 units:

Sales	350,000
Direct labour (10 per hour)	40,000
Direct materials (11.25kgs per unit)	180,000
Variable production cost (based on labour hours)	12,000
Fixed production cost	40,000
Variable selling and administration cost	6,000
Fixed selling and administration cost	8,000
Budgeted net profit	64,000

Note: there are no opening inventories or closing inventories

(Fill in the shaded cells)

					Cost per unit ()
Direct labour		hours @	10	per hour
Direct materials	11.25	Kgs @		per kg
............................					27.50
Variable production overhead		hours @		per hour	1.50
VARIABLE PRODUCTION COST					29.00
Fixed production cost
Total production cost
Variable selling and administration costs
Fixed selling and administration costs					1.00
Total cost					35.75

(5 marks)